EURO Ressources

EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2013 - Seite 3

Select IFRS results for the twelve and three months ended December 2013, as compared to the twelve and three months ended December 31, 2012

Since December 31, 2010, EURO no longer prepares and publishes consolidated financial statements for French purposes; only French GAAP can be applied for the presentation of statutory financial statements and approval by the shareholders.  However, in order to comply with Canadian requirements and have equivalency of information between French financial requirements and Canadian financial requirements, the following information on the financial results is provided for comparison purposes.

2013 compared to 2012

Under IFRS, EURO recorded a net profit of €23.8 million (€0.381 per share) for 2013 compared to €25.1 million (€0.401 per share) for 2012.

Revenues under IFRS are equivalent to revenues under French GAAP as reported above.

Operating expenses for 2013 were €1.0 million compared to €0.9 million in 2012.  The increase is mainly due to increased legal fees in relation to cost reduction strategies, increased legal exchange and listing fees, and increased operating taxes.

The decrease in amortization expense to €0.6 million in 2013 (2012: €0.7 million), is substantially due to decrease in gold production at the Rosebel mine.

During the second quarter of 2013, EURO recorded an impairment expense on its available-for-sale financial assets related to its investment in COLUMBUS in the amount of €0.2 million.  At the end of 2013, EURO reviewed the value of its available-for-sale financial assets for objective evidence of impairment based on both quantitative and qualitative criteria and determined that an additional impairment charge was not required.  There was no impairment expense recorded in 2012. 

EURO recorded net foreign exchange losses of €0.1 million in 2013, which compares to €0.3 million in 2012, related to the revaluation of bank accounts and other significant balance sheet accounts denominated in euros, and the revaluation and payment of dividends and income taxes.

EURO recorded an income tax expense of €13.7 million for 2013 compared to €14.8 million in 2012.  The decrease is mainly due to lower royalty revenues in 2013 as compared to 2012, partially offset by the income tax impact of the exercise of the Option agreement. The primary difference between IFRS and French GAAP is the C.V.A.E. for €0.4 million in 2013 (2012: €0.6 million), which is included in income tax expense under IFRS.